Jefferies initiates Siemens Energy India stock with Buy rating on power capex growth

Published 08/07/2025, 06:38
Jefferies initiates Siemens Energy India stock with Buy rating on power capex growth

Investing.com - Jefferies initiated coverage on Siemens (ETR:SIEGn) Energy India (ENRIN:IN) with a Buy rating and a price target of INR3,500.00 on Tuesday.

The research firm cited expectations that power capital expenditure will increase 2.2 times to over USD280 billion during fiscal years 2025-2030 compared to fiscal years 2018-2024, representing a 21% compound annual growth rate.

Transmission bids worth Rs1.5 trillion were awarded in fiscal year 2025, a fourfold increase from the Rs395 billion awarded in fiscal year 2024, according to Jefferies.

Siemens Energy is investing Rs4.6 billion to double its power transformer capacity and add large reactors to its portfolio by December 2025, reflecting management’s confidence in future growth opportunities.

The firm noted that following its demerger, Siemens Energy will focus entirely on the energy business, positioning it as a key beneficiary of the USD100 billion-plus transmission capital expenditure pipeline, with its comprehensive energy portfolio backed by technology from its global parent potentially driving market share gains.

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